MB
= 300
−
10Q, while in Port
Question
In Stony Brook, the marginal benefit associated with pollution cleanup is MB = 300 − 10Q, while in Port
Jefferson, the marginal benefit associated with pollution cleanup is MB = 200 − 4Q.
Suppose that the marginal cost of cleanup is constant at $12 per unit.
What is the optimal level of pollution cleanup in each of the two regions?
Economics